What Investors Need to Know About the Brexit Deal

Prime Minister Theresa May delays a key parliamentary vote on her Brexit deal--here's why it's hurting the global markets.
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Brexit is on everyone's mind Monday, Dec. 10. 

The markets responded poorly to the announcement that Prime Minister Theresa May had moved to delay a key parliamentary vote on her Brexit deal. 

TheStreet's London Bureau Chief, Martin Baccardax, reported on the news

The Prime Minister said she would delay the vote, which was slated to begin late Tuesday, as she seeks to find support in her fractured party for the so-called EU withdrawl agreement, a deal that sets out Britain's Brexit terms but leaves open for negotiation its future trading relationship with the bloc.

"If we went ahead and held the vote tomorrow the deal would be rejected by a significant margin," May told lawmakers. "We will therefore defer the vote scheduled for tomorrow and not proceed to divide the House at this time."

The delay came just hours after her official spokesperson said the vote would definitely happen, and Europe's highest court confirmed an earlier opinion that Britain can, if it wants, unilaterally cancel Brexit proceedings and remain a member of the European Union.

"Such a revocation, decided in accordance with its own national constitutional requirements, would have the effect that the United Kingdom remains in the EU under terms that are unchanged," the European Court of Justice said in a statement Monday.

May's exit plan, which she agreed with EU officials following more than a year of torturous negotiations, aims to maintain broad trade ties on goods with the bloc, but allows for just enough freedom for the UK to strike new arrangements with countries such as the U.S. and China.

"I don't say that this deal is perfect. It was never going to be. That's the nature of a negotiation," May told lawmakers Tuesday. "We should not let the search for the perfect Brexit prevent a good Brexit that delivers for the British people."

Nigel Dodds, a member of the Democratic Unionist Party that props up May's government in a so-called "confidence arrangement", called the advice "devastating", cementing his vow to vote against the deal next week.

Baccardax broke down what investors need to know about the global impact of the Brexit deal.